9 Jun 2011

Methven to recover about half amount owed by UK firm

2:02 pm on 9 June 2011

Tapware and showerhead maker Methven it expects to recover $460,000 from the failure of its largest British customer.

The listed company has reached an agreement with the administrator of Focus DIY, which Methven says ends its claim.

The return is about 55% of the full amount it's owed. Half the money will be paid next Thursday and the rest by the end of the month.

As the British market remains weak Methven is concentrating on cutting costs and relaunching its brands through other retailers to entice customers.

About 40 of Focus's stores have been sold, but the rest of the business is not expected to continue trading.

Methven's profit slumped 39% to $4.7 million in the year to the end of March but is expecting a stronger performance in its underlying profit this financial year.